Bowery Savings Bank - New York, NY

Bank Information

Episode Type: Run Only
Bank Type: savings bank
Start Date: October 14, 1854
Location: New York, New York (40.714, -74.006)

Metadata

Model: gpt-5-mini
Short Digest: 531689b4

Response Measures

Accommodated withdrawals

Description

Multiple newspaper items in Oct–Dec 1854 report runs/large withdrawals on Bowery Savings Bank tied to panic after several savings-bank failures (Knickerbocker, Eighth Avenue, Empire City). The Bowery met demands and was able to pay; no suspension or receivership is reported. Therefore classify as run_only (bank remained open).

Events (2)

1. October 14, 1854 Run

Cause: Local Banks
Cause Details: Rumor and depositor alarm triggered by troubles/failures among other uptown savings banks mentioned in the press (Knickerbocker, Eighth Avenue, Empire City), causing withdrawals from savings institutions generally.
Measures: Bank met withdrawals; described as sound and able to pay in full.
Newspaper Excerpt: There was a run on the Bowery Savings Bank, but not a serious one.
Source: newspapers

2. December 16, 1854 Run

Cause: Local Banks
Cause Details: Continued depositor alarm and hoarding of gold after multiple savings bank suspensions and failures earlier in December, producing heavy withdrawals from several savings banks including the Bowery.
Measures: Paid out large withdrawals; met demands; losses quantified ($27,000 on Dec 16).
Newspaper Excerpt: The Bowery were very busy meeting demands upon them,... The Bowery Savings Bank only lost $27,000 on Saturday, the 16th inst., from which it is evident that the run is nearly over.
Source: newspapers

Newspaper Articles (4)

1. October 14, 1854 New-York Daily Tribune New York, NY

Article from New-York Daily Tribune, October 14, 1854

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The Exchanges at the Clearing House were less today-$16,286,000. The steamer to-morrow will take $900,000 to $1,000,000, unless there should be some countermands. Of this some $150,000 is in Mexican dollars. There is considerable difference of opinion as to the specie reserve to be shown on Monday next, but the general opinion appears to be that it will be about eleven millions. Money has been in active demand to-day from outsiders, but the stock houses are generally easy. The feeling among the Banks is that a further contraction is necessary. The merchants thus far have met their October payments with unexpected promptness. The rates for paper are not materially changed, but tending upward. On demand outside loans command higher rates. Borrowers not well known, or with doubtful securities, must pay much larger shaves than last month. There were various rumors in the street to-day of trouble among the up town Banks, but as far as we could learn, there was less excitement than yesterday. At the Clearing House all the suspected banks were unusually prompt this morning. There was a run on the Bowery Savings Bank, but not a serious one. This is one of the soundest institutions in the City, and can pay to the uttermost. Some of the rumors of the day were simply absurd. The Knickerbocker Savings Bank, which suspended a day or two ago with deposites to the extent of about $500,000, appears to have been managed in direct violation of the law organizing Savings Institutions. We presume the Trustees are personally liable should there be any deficiency of assets to pay the deposits. This Institution is reported to have $40,000 of Knickerbocker Bank stock, $90,000 of St. Nicholas Insurance stock, and a large amount of some Life Insurance Companies stock as security for loans, and all these concerns are more or less connected with the Knickerbocker Bank. This concern appears to have put out its suckers in every direction where a dollar could be drawn in. Thelaw authorizing Savings Institutions states that the funds shall be only inves. ted in Bonds and Mortgages, Government Stocks or City Stocks. The Eighth-av. Savings Bank was to resume payment of deposits to-morrow, but we hear that it doubtful if it will do so. It is stated that the stockholders of the Ohio Life Insurance and Trust Company at Cincinnati have resolved that in case the General Assembly of that State will not grant such relief from the present burden of taxation imposed upon said Company, as to allow of reasonable dividends upon the capital stock, the affairs of the Company shall be wound up and the capital returned to the holders of stock. There is less pressure in the street to-day of uncurrent money, and the redemptions are proceeding without difficulty. The report of the Erie Committee will probably be made public on Monday. It only needs the signature of the Chairman. The Committee of the Board of Brokers to which was referred the question of the contracts in Parker Vein Ceal Company stock, have reported the following plan of settlement, which has been adopted. The arrangement is only optional, not obligatory: The Committee appointed by & meeting of members of the Stock and Exchange Board, having contracts in the Stock of the Parker Vein Coal Company, to embody the views of said meeting, in regard to a plan for adjustment of said contracts, respectfully submit the following as conveying the sense of the meeting: Resolved, That in view of the difficulties in the way of the fulfillment of existing contracts in the stock of the Parker Vein Company, This meeting recommends as a compromise between buyer and seller, the following settlement, viz: The buyer shall accept either of three propositions. 1st. He shall settle his contracts by paying to the seller 40 per cent. of the price at which he purchased and interest, leaving the stock to belong to the seller. Or 2d. He shall pay the seller 60 per cent. of the stock. price at which he bought and interest, and take the Or 3d. He shall pay the seller 50 per cent. of the price at which be bought, and interest, divide the stock, each taking one half; all the propositions to apply to contracts at and below 84 per share, the last two only to contracts above that figure. In the delivery of stock as contemplated in the above settlement, it is understood that the seller may deliver certificate and irrevocable power of attorney, attested by & notary public, or irrevocable power 80 attested without the certificate, but in the latter case the power must be accompanied by an affidavit of the maker, that the stock stood in his name at the closing of the books of the Company, the party so delivering in no way guaranteeing the genuineness of the stock. The Auction Sales held during the week have been

2. December 13, 1854 The New York Herald New York, NY

Article from The New York Herald, December 13, 1854

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MONEY MARKET. TUESDAY, Dec. 12-61 M. The stock market presents no new feature. At the first board to-day the operations were limited, and at lower prices. Erie Income Bonds fell off 1 per cent; IIIInois Central Bonds, %; New York Central Railroad Bonds, %; Delaware and Hudson, %; Canton Co., %; Pennsylvania Coal, %; Nicaragua Transit, %: New York Central Railroad, %; Erie Railroad, %; Harlem Railroad, M; Reading Railroad, %; Hudson River Railroad, %; Northern Indiana Construction, 1. The transactions in Nicaragua Transit to-day were unusually large, but prices fell off from the opening. New York Central stock still rules above the market value of the bonds, but it probably will not continue so long. The difficulty of getting argequantities of the stock when required, in consequence of its general distribution, deters sellers from putting out large contracts, and prices are therefore sustained much beyond its actual value. Holders are waiting patiently for a dividend. Their patience will soon be exhausted, when we may look for a greater supply of stock on the market. It was a long time before holders of Frie Railroad stock believed that investment was not the best on the list, and those who would not sell at 80 and 90 per cent have since sold at 40 and 50 percent It will be just so with New York Central. It willgo down as fast as Erie, and ultimately reach as low points. It is now the highest railroad stock on the market, and it is the most inflated, overgrown corporation in the coun try. Its capital, funded and floating debt, amount t nearly forty million of dollars, and will soon exceed tha enormous sum. It must break down from its own weight and when it does collapse, it will leave a sad wreck be hind. From the time of the consolidation it has been going rapidly to decay. Under the different companies the different stocks were kept at a premium, and large dividends paid, in some way, but since the amalgan tion, the tendency has been downward, and the entire concern bas become dilapidated and diseased. Since the consolidation, twelve million of dollars have been added to its indebtedness, without anything to show for it and the roadway and rolling machinery are in such a condition that an expenditure of from three to five million of dollars will be required to place them in decent condition. The opinion is rapidly gaining ground that the New York Central Railroad Company never will pay another dividend above two or three per cent per annum from its net earnings. The Clearing House closed up another bank to-day. The Central Bank failed to make good its account this morning, and was therefore suspended. This concern has been putting up an elegant marble building on the corner of Broadway and Chambers street, at an expense of about one hundred thousand dollars, equal to about one third of its capital,and the probability is that it will, when completed, be occupied for some other purpose than that originally intended. About a year ago, new banks were created at the rate of one per week, they are now suspending at about the same rate. We shall soon get back again to the old number. Bill holders of the Central Bank need be under no apprehension regarding their value. The returns of this bank for the week ending the 9th instant, were as follows:-Loans, $301,172; deposits, $186,249; circulation, $83,733-Specie, $22,405. After the adjournment of the first board the following sales were made at auction by Simeon Draper:$3,000 N. Y. and Har. R. R., 1st mort., int. added. 80% 2,000 Green Bay, Milwaukie, and Chicago 8's, 1st 81 mort., int. added. 18 40 shares Suffolk Bank 30 97 American Exchange Bank 20 23½ Third Avenue Railroad Company Adrian H. Muller & Co. regular semi-weekly sale of stocks and bonds will take place at the Merchants' Exchange to-morrow (Wednesday), at half-past 12 o'clock, At the second board the market was heavy and depressed. The transactions were confined to a few of the leading fancies. Nicaragua Transit fell off ½ per cent; Cumberland Coal, 1/4; Erie Railroad, 1/4; Reading Railroad, 1/4. At the close the market had a downward ten dency. The receipts at the office of the Assistant Treasurer of this port to-day amounted to $62,605 payments, $52,598 21-balance, $6,738,241 27. Paid for assayoffice, $50,198 50. There has been during the past two days a great run upon the different savings banks of the city. The Cham bers street Savings Bank paid out to depositors yesterday a larger amount than ever drawn before in any one day. The Greenwich and Bowery were very busy meeting demands upon them,and the deposits must have been largely reduced. The failureof the Eighth Avenue, the Knickerboel er, and the Empire City Savings Banks has alarmed depositors, and they are hoarding up their money in gold, distrustful of all savings institutions. We are not much surprised at this. The failure of three savings banks in less than three months is pretty well calculated to destroy public confidence, and we wonder depositors do not make a grand rush upon the banks still in operation and draw out every dollar due them. There is very little doubt in our mind, but that the Chambers street, the Bowery, the Greenwich, the Seamen's and, perhaps one or two other Savings banks are perfectly sound and solvent, and can pay every dollar due their depositors, but it will be difficult to make the public believe it, after the losses incurred by the failures which have already taken place. The warrants entered at the Treasury Department, Washington, on the 9th inst., were:$2,763.84 For the payment of Treasury debts 474 12 For the customs 40 For the War Department 91,213 12 For the Navy Department 726 74 For the Interior Department The Boston Transcript of the 11th inst. says:The business community in this city were surprised this morning to learn that one of the largest and most extensive dry goods houses-J. W. Blodgett & Co.-in Pearl street, enjoying a high reputation in all sections of the United States and Canadas, had failed and gone into chancery. The liabilities of the firm are between $1,900,000 and They are reported to owe one commission house in Milk street, $176,000; another, for $151,000; about $50,000. and there The are several failures others at the who South are and creditors West, and the utter impossibility of collecting the vast sums due them, is the cause assigned for this suspension. It is the largest failure of the season in Boston. The report of the Land missioner discloses some interesting facts in relation to the state of the government lands. It appears that during the fifteen months ending with September, 1854, the sales of land were 13,735,208 acres ;a very large proportion of which was in those regions where railroads have penetrated. This settlement of government land contributes largely to the success of the roads that induce the settlement. The land report shows that in the line of the Illinois Central region, where, for fifteen years, the government could not sell an acre, there have been sold 2,377,994 acres, much of it at deuble price. This tract, equal to the State of Connecticut in surface, will, in a few years, become tributary to the Central Railroad. In the midst of that large tract, the Central Company own a large quantity of selected lands-to be put upon the market when its value shall have felt the influence of the sales

3. December 13, 1854 The New York Herald New York, NY

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City Intelligence. MONETARY PANIC-RUN ON THE SAVINGS BANKS.-The present depressed state of business, with the recent failures in the commercial circles, has created quite a panic among that portion of the community who have investments in savings banks. Because some of the larger banks have stopped payment, it is believed that none are safe, and as a consequence the run has commenced on the institutions referred to. Large amounts have already been withdrawn, but in no one instance that we have heard of have the apprehensions of the depositors been realized by the refusal or inability of the banks to pay on demand. There is at present no cause for fear in regard to the savings institutions, and those who have entrusted them with their money may feel perfectly safe as to its security. We make this remark particularly in regard to the Chambers street, the Bowery, and the Seaman's Banks, and judging from present appearances, there is no reason to apprehend a failure in any of these institutions. FIRE IN WARREN STREET.-Last evening about eight o'clock a fire broke out amongst the hay recently on fire at No. 117 Warren street. The greater portion of the hay had been thrown out, and the balance still remaining in the third loft, burst out again on fire, supposed to be caused by some sparks remaining from the old fire on Friday night. No damage.

4. December 27, 1854 New Orleans Daily Crescent New Orleans, LA

Article from New Orleans Daily Crescent, December 27, 1854

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The New York banks showed themselves $1,000,000 stronger in gold on the 18th inst. than a week previous. The Savings Banks have absorbed of the $1. 300,000 over drawn from the Government Bank, only $260,000. The Bowery Savings Bank only lost $27,000 on Saturday, the 16th inst., from which it is evident that the run is nearly over. These are indications that the pressure has done its worst.